I think that's a pretty bad generalization. I don't put much faith in outsourced SEO, but I think you'd be surprised at how many WW members probably outsource programming work to India or other countries in Asia.
I'll disagree, and here's why: many small business owners aren't going to do as much research into prospective designers as government entities or Fortune 500 companies. If a flower shop owner with little to no knowledge about websites, cms and SEO starts looking up design firms in the phone book, they might be sold on the first one they talk to that's all sizzle and no steak. Technically everyone wants the job done right, the problem is that some business owners won't be able to easily distinguish between those who will do a great job and those who wont. And maybe a big company that completely outsources and underquotes most design firms will actually do a good job. The point is that even if I'm doing a great job five years from now, I'll get less projects because of the number of new designers fresh out of community college aggressively offering rock bottom priced websites.
It's easy to ask a friend or associate to recommend a dentist or auto mechanic, because odds are they have some sort of experience with either. People won't be as likely to do their research when it comes to designers, and if they're not up on what makes for quality design, they'll jump on the first good sales pitch or lowest quote they hear.